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Motherson Sumi - Value Unlocking, Inorganic Opportunities To Drive Growth: Systematix 

Motherson Sumi - Value Unlocking, Inorganic Opportunities To Drive Growth: Systematix

Finished wire harnesses hang from a trolley at the Motherson Sumi Systems wiring harness plant in Faridabad. (Photographer: Brent Lewin/Bloomberg)
Finished wire harnesses hang from a trolley at the Motherson Sumi Systems wiring harness plant in Faridabad. (Photographer: Brent Lewin/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Systematix Research Report

Motherson Sumi Systems Ltd. announced a scheme of reorganisation in July 2020 to simplify the group structure, align promoter and shareholder interests and accomplish Vision 2025 (topline $36 billion; return on capital employed 40%).

We expect the reorganisation to help unlock value in the domestic wiring harness business (Motherson Sumi Wiring India Ltd.) and improve the group's ability to raise capital.

Further, all product verticals (in promoter entity Samvardhana Motherson International Ltd.) will come under one roof.

We expect these product portfolios to play an important role in the next leg of inorganic growth (global opportunity size of $200 billion).

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Systematix Motherson Sumi Company Update.pdf

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